Education Secretary Bridget Phillipson has signalled that the Government could scrap the two-child benefit cap, saying she is confident ministers will do the right thing for children living in poverty. The cap, introduced by the Conservative government in 2017, restricts universal credit and child tax credit to the first two children in most households. Phillipson, who is seeking Labour’s deputy leadership, said there is an urgency to change the policy and she will push for changes in Cabinet.

She argued Labour would not have introduced the policy and stressed that more needs to be done. She also indicated she would be prepared to press ministers to abolish the cap as part of Labour’s priorities during the leadership contest.

Powell, who was removed from the position of Commons leader in a recent reshuffle, has criticised welfare policy and called for clarity from the Government on scrapping the cap. With Powell freer from Cabinet collective responsibility, she has urged the Government to spell out its intent to end the two-child cap.